Leaders could reduce tax hike

This budget season, like most, has seen local governments wobbling along a tight rope, balancing demands for services against a local distaste for tax hikes.

But this year the walk was more tenuous because of mounting debt payments, state level budget shortfalls and the protests of parents to fund depleted school budgets.

The Orange County Board of Commissioners seem poised to reduce the tax increase from 9 cents to a total of 6.5 cents.

The new budget, jointly proposed by commissioners Barry Jacobs and Valerie Foushee, will increase the amount of money allocated to education while trimming nearly $3 million from the budget.

Chapel Hill-Carrboro City Schools and Orange County Schools now will receive county contributions of $173 per student, bringing the total per pupil amount to $2,769.

The manager’s recommended budget called only for a $95 increase. But the torrent of support from parents seems to have swayed commissioners to increase funding for the schools, which expect to lose as much as $1.8 million if the N.C. General Assembly pursues the large funding cuts for education.

“I think that makes a very large dent,” said Steve Scroggs, assistant superintendent for Support Services. “If the state would be as thoughtful and creative as the county commissioners then we would end up with a good year.”

The increase was made possible by moving $1.2 million worth of construction funds to the schools operating budgets. These funds were to be used for ongoing hardware maintenance, Scroggs said.

Long term school capital would not be affected. “We can survive losing the recurring budget,” he said.

Commissioners also voted to increase the city schools special district tax to 18.34 cents, nearly a one cent increase of the current equalized rate of 17.5 cents.

At $761,000 per penny the tax will generate an additional $14 million for city schools, which could inflame the debate over school funding equity. Commissioner Chairman Moses Carey, Jr. cited this as a reason for his dissent.

The largest single reduction from the manager’s budget was a $1.2 million cut back in the county’s long-range capital spending.

Commissioners also eliminated an across-the-board cost of living adjustment for county employees, in favor of a $4 in-range pay increase, saving $740,000. In order to come up with the final $800,000, county staff will ask department heads to trim their operating costs.

The budget is expected to be adopted without change tonight.

Chapel Hill Favors Tax Hike

Chapel Hill Town Council seem likely to pass a budget next week that will require a slight tax hike.

The manager’s revised budget calls for a 2.9-cent tax increase over the equalized tax rate of 49.30 cents for $100 of assessed property value.

At this rate an owner of a $320,000 house — the average sales value of a Chapel Hill home in 2003 — would owe $1,670 in property taxes.

Robin Cutson was the lone resident to speak at a public hearing on the proposed budget Monday.

She took the opportunity to scold council members for what she says is excessive spending in the area of public art as well the funding provided to nonprofit organizations by the town’s Human Services Advisory Board.

“The town already contributes money to around 50 nonprofits and public agencies and shows no sign of reigning in this spending.”

The advisory board has received 44 requests from local nonprofit human service agencies, totaling $321,825. They have requested $225,000, an increase of $19,000 from the 2004-05 fiscal year.

The town budget is set to be passed June 27.

Carrboro budget passes

The Carrboro budget, though slated to pass on June 21, received so little public criticism that it passed ahead of schedule on June 8.

The budget calls for no tax increase. The tax rate will remain at 62.44 cents per $100 of assessed value, equalized for revaluation.

The most expensive item in the $16.3 million budget involves extending city infrastructure to the newly annexed areas in the northern sector of the town, which will cost the town more than $250,000 next fiscal year. The town will not begin receiving revenues from these areas until the 2006-07 fiscal year.

Contact the City Editor at citydesk@unc.edu.